Have you ever wondered what’s behind coffee Nestlé And Starbucks that every day you taste from this part of the world? A new investigation reveals it and the facts are clear: behind it there is the hard reality experienced by small coffee producersespecially in the mountains of Chiapas and Veracruz, in Mexico.
They are them, the coffee farmers, mostly belonging to populations indigenouswhich support the supply chains of these companies in the true sense of the word and which undergo opaque practices, violations of human rights It is a systematic marginalization that perpetuates poverty in rural communities.
These are some of the conclusions of the research Exploitation and opacity: The Hidden Reality of Mexican Coffee in The Supply Chains by Nestlé and Starbucksproduced by Empower, in collaboration with Coffee Watch and the Project for Economic, Social and Cultural Rights, AC (Prodesc).
The investigation
In the mountains of Chiapas and Veracruz, where Mexican coffee thrives, there is a harsh reality that Nestlé and Starbucks consumers never see in their expensive coffee cups – reads the relationship.
This research relationship reveals how Nestlé and Starbucks, through questionable intermediaries and certification practices, have built a model that gives priority to corporate profits and control over the well -being of small producers who support their supply chains, working closely with the ministries and agencies of the Mexican government.
It is to be clarified, in fact, that Neither Nestlé nor Starbucks buy directly from the producersbut they turn to merchants such as Switzerland Ecom Agroindustrial Corp. Limited (Ecom), the German Neumann Kaffe Gruppe (NKG) and the Dutch Louis Dreyfus Company BV (LDC), which, through their branches in the country, buy directly from small farmers.
The Coffee price is set by Nestlé and Starbucks based on the demand and supply of the product. In turn, the graduates control direct purchase with coffee farmers, which allows them to influence the prices and conditions of purchase, “generally at the expense of small producers”, says the report. The latter are the most vulnerable ring of the chain, as they are forced to make their product cheaper.
The key results:
Coffee trade companies often set purchasing rates that are significantly lower than covering production costs, exacerbating the economic vulnerability of small coffee producers.
The links with government institutions in Mexico
The report argues that Nestlé and Starbucks are able to maintain this system through close links with government institutions And that basically the coffee companies exploit these dynamics to make sure they can continue to pay low prices and influence the quality and variety of cultivated coffee.
This report reveals abuses that require urgent investigation by the new Mexican authorities and, in some cases, should serve as a warning for the authorities of the Consumer Country Countries such as France and Germany, where new laws on corporate responsibility are in force. If the authorities confirm our discoveries, then Nestlé and Starbucks should be held responsible for their practices – says Etelle Higonnet, executive director of the NGO Coffee Watch. In addition, we should close the certification systems that block coffee farmers in extreme poverty and that close an eye on serious human rights violations.
The hypocrisy of the coffee giants
The report therefore shows how the Nestlé coffee supply chains and Starbucks cause not only environmental damage, but perpetual violations of human rights. The cultivation of coffee is the sixth cause of deforestation globally And in the report it is highlighted how destructive coffee practices for the environment are making the loss of arboreal coverage in all of Mexico advance. Yet both Nestlé and Starbucks promote social responsibility and sustainability practices of their global supply chain.
For example, Starbucks has publicly established himself as a leader in the ethical supply of coffee and tea, also developing his own series of “Coffee and Farmer Equity (Cafe) Practices”, which includes requirements for Starbucks coffee suppliers to demonstrate environmental leadership and the protection of people who work on coffee plantations, including wage standards and a “safe workburst of work, and human “.
Starbucks, for his part, has positioned himself as the leader of global sales through his cafés, cultivating an image of commitment for sustainability, the traceability of the supply chain and support for producers – reads the report. However, the reality behind this facade tells a different story. Business control over production, prices, certifications and even social policies undermines the promises that Starbucks makes to consumers.
Nestlé uses the Common Code of the Coffee Community (4C) certification, which should guarantee that coffee cultivation does not contribute to deforestation or that human and work rights are respected. Investigations show that this standard may not have sufficient independence and favor companies. Nestlé also promotes a strong practice of sustainability on its website, including the commitment for the protection of nature, ethical commercial practices, the care of communities and an action plan for human rights.
At the end of 2024, the CEO of Starbucks, Brian Niccol, earned 96 million dollars in just four months, while the CEO of Nestlé Laurent Freixe earns over 12 million dollars a year. Yet Mexican workers who cultivate Caffè Starbucks and Nestlé are paid on average $ 106 a month, below the poverty line.
Here you will find the complete relationship.
